CHAPTER EXAM-TEXAS LAWS AND RULES

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CHAPTER EXAM-TEXAS LAWS AND RULES

Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -41 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: Which action will a life insurance company most likely take if an insured dies and it is discovered that the insured's age was misstated on the application?

Answer:

Pay an amount the premiums would have purchased at the insured's actual age

Question 2: An example of false advertising would be

Answer:

An insurer exaggerating its dividends in a magazine advertisement Question 3: A Medicare Supplement policy may be cancelled for which of the following reasons?

Answer:

The premium has not been paid by the insured

Question 4: A license may be denied, suspended, or revoked if the licensee

Answer:

Is found guilty of misrepresentation in obtaining the license

Question 5: With whom may an agent legally share commissions?

Answer:

Another agent with the same line of insurance

Question 6: Who owns a stock insurance company?

Answer:

Stockholders Question 7: Which of the following statements about health coverage for newborns is Not true?

Answer:

Coverage is limited to only congenital defects Question 8: What is an organization that solicits insurance only to its members?

Answer:

Fraternal benefit society Question 9: What is the MINIMUM benefit period that must be offered by a Long-Term Care policy?

Answer:

12 months Question 10: An applicant MUST receive an Outline of Coverage when an application is taken for

Answer:

Medicare Supplement policy Question 11: Which of the following benefits is Not required under a group health plan for drug and alcohol treatment?

Answer:

Transportation to and from a treatment facility Question 12: An employee is covered under a company group life plan with a $50,000 death benefit. What is the MAXIMUM amount a spouse may be insured for under this program?

Answer:

$25,000

Question 13: An Evidence of Coverage form may be issued by a Health Maintenance

Organization (HMO) after being approved by the

Answer:

Commissioner

Question 14: Which Unfair Trade Practice involves an agent telling a prospective client that a policy's dividends are guaranteed?

Answer:

Misrepresentation

Question 15: An example of rebating would be

Answer:

Returning a portion of a premium as inducement to purchase insurance Question 16: A temporary agent's license issued by the Commissioner of Insurance is valid for up to

Answer:

90 days Question 17: An insurance agent has a fiduciary responsibility to all of the following EXCEPT

Answer:

Other Agents because the agent handles money of the insured and insurer, he/she has a fiduciary responsibility Question 18: Which of the following actions does the commissioner of Insurance Not have the power to conduct?

Answer:

Activate insurance companies' financial reserves

Question 19: How often must an insurance agent license normally be renewed?

Answer:

Every two years

Question 20: A domestic insurance company in Texas is considered a company that

Answer:

Is incorporated and formed in Texas Question 21: A certificate of -- permits an insurance company to transact business in Texas

Answer:

Authority

Question 22: Every 12-months after the initial enrollment period, an HMO must hold an open enrollment period of

Answer:

31 days Question 23: An insurer is Not required to provide information on fraudulent claims if requested by

Answer:

An insured

Question 24: A plan through the Marketplace May be purchased by

Answer:

Any legal resident (except those imprisoned) Question 25: Which of the following is a valid reason for an enrollee to be cancelled by a Health Maintenance Organization (HMO) plan?

Answer:

Nonpayment of coverage Question 26: If an insured's age was misstated on a life insurance contract, the Misstatement of Age provision requires that any death benefit payable would be

Answer:

An amount that the premiums paid would have purchased at the current age Question 27: During a sales presentation for a participating life insurance policy, an agent Must.

Answer:

Make a prospect understand that dividends are Not guaranteed Question 28: Which of these provisions is Not required in life insurance policies?

Answer:

Extended Term Question 29: A new agent must complete at LEAST ____ hours of continuing education within 24 months of initial licensure.

Answer:

A MINIMUM of 24 hours of continuing education